Where Pakistan’s economy is diving deep into to muddy waters of the worst financial turmoil, the country’s industry is facing a new lock down. Local carmakers first announced a back-to-back production cut and now (Toyota) start offering 100% refund – started returning booking amounts to the customers in the face of no production.
Toyota Indus Motors announced to return booking payment with a markup stating that the company would produce a very low number of units in February and March. The Chief Executive Officer of Indus Motor Company (IMC) has stated that the recent import curbs have shattered the local car industry. The incumbent government should take immediate steps to beget political stability, bringing steadiness to dwindling economic graphs.
“We are forced to currently operate at 40-45 per cent of our capacity. Unless these restrictions are eased, complete plant closures and total non-production will be inevitable,” he added.
He further informed, “The continued weakening of the rupee will push the cost of production higher, in turn restricting manufacturers’ bottom line in the forthcoming quarters because of reduced volumes, demand and supply issues, and low margins.”
And interestingly, this is not the first time, IMC is announcing 100% refund. Previously, company reimburse booking payment with interest due to delays and uncertainties in delivery dates.
IMC Halts Production For 2 Weeks
Toyota IMC has announced that it will be shutting down all production completely from 1st February till 14th February 2023 due to an inventory shortage.
Indus Motor Company Limited (IMC Ltd.) is the assembler and distributor of Toyota vehicles in Pakistan. After increasing car prices due to the Rupee devaluation, Toyota is shutting down operation now for two whole weeks.
The main reason behind this break in operations is the shortage of inventory. The company claimed that it is still facing issues regarding importing raw materials and getting its consignments cleared from commercial banks.
what do you think about ongoing economic situation affecting local auto industry? Share your thoughts in the comments section.
